Brazil launches credit aid as US adds 25% tariff on key exports

The United States Office of the USTR announced a 25% additional tariff on a range of Brazilian products, affecting roughly 18% of Brazil's exports to the United States – about US$ 7.4 billion and 2,400 firms. The measures target sectors such as wood, machinery and electrical equipment, furniture, ceramics, footwear and sugar, while aviation products, oil, coffee and meat are exempt.

In response, President Luiz Inácio Lula’s government re‑activated the Brasil Soberano credit program to provide working‑capital lines for the impacted exporters. Vice‑president Geraldo Alckmin, Finance Minister Dario Durigan and Development Minister Márcio Elias Rosa described the tariffs as “unjust and undue” and said the administration will consider invoking the recently passed Reciprocity Law and, if needed, bring the dispute before the World Trade Organization.

Congressional committees have also voiced concern, urging a negotiated solution and noting that the tariffs could harm jobs and the broader economy. The government estimates that the relief package will be smaller than previous rounds, given the larger list of exempt products.